More Jobs and Higher Pay Leads to Increased Buyer Demand
For a long time, there has been speculation of a recession. However, the economy has been extraordinarily robust. Why? One explanation is that employment and earnings have remained solid. Let's take a look at the most recent information on both and why both are good news if you're thinking about selling your home.
More Jobs Are Being Created
Instead of facing the job losses typical of any recession, the economy has been growing and adding jobs. According to the Bureau of Labor Statistics (BLS), 187,000 jobs were created in July, which is up from the 185,000 created in June. That means more people are finding work. In fact, so many jobs are being added that the unemployment rate is far lower than the long-term average of 5.7% (see graph below):
A low unemployment rate indicates that the majority of people who want to work are able to do so. People with jobs have consistent incomes, which can help them explore homeownership.
People Are Making More Money
And data also shows hourly earnings have been going up pretty steadily over the past few years (see graph below):
When wages rise, people have more money to save or use to buy property. The increase in income helps solve some of the current home affordability issues. Wages, property prices, and mortgage rates all affect affordability. With higher home prices and mortgage rates right now, Builder Online summarizes how growing wages can help:
“The housing market has been a beneficiary of the strong economy and labor market. Many of those employed have saved money over the past few years and used those funds toward a down payment on a home.”
If you're considering selling your home, a robust job market, rising salaries, and the resulting buyer demand are great news. It means that there is a broader pool of potential buyers out there who can pursue their goals of homeownership.
There's a lot working in your favor, with more jobs and growing salaries attracting eager consumers. Let's connect so you can have someone to guide you through the process of selling your property, from determining the right price to preparing your home for showings.